US STOCKS-Wall Street slides as Greece worries intensify

* Skepticism spreads on Greek rescue deal

* Factory orders, pending home sales rise

* Dow falls back below 11,000

* Dow down 2 pct, S&P down 2.2 pct, Nasdaq down 3 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

By Leah Schnurr

NEW YORK, May 4 (BestGrowthStock) – Investors dumped U.S. stocks (Read more about the stock market today. ) on
Tuesday as fears grew that the financial rescue package for
Greece might not be enough to prevent a sovereign debt crisis
from spreading to other weak euro zone countries.

Wall Street’s major indexes slid more than 2 percent,
echoing the wave of fear that gripped financial markets as
investors fretted the crisis in Europe could derail the global
economic recovery. European shares dropped 3 percent, while
commodities sank and the euro hit a one-year low against the
dollar.

Technology stocks, top gainers for the year, were pressured
the most, with the PHLX semiconductor index (.SOXX: ) down nearly
5 percent. In midday trading the Nasdaq was down 3 percent, on
track for its worst day since early February.

“A lack of a firm tone in the euro is causing people to be
nervous that this package is not going to solve the problem,”
said Nick Kalivas, senior equity index analyst at MF Global in
Chicago, referring to the rescue package for Greece carved out
over the weekend.

“The stock market’s seen a tremendous run on very
constructive news in an environment where rates are low, and it
basically can’t hold the highs,” Kalivas said. “It’s causing
people to take profits and ring the register a bit.”

Striking public workers in Greece challenged their
government’s agreement to implement austerity measures under a
bailout deal with the European Union and the International
Monetary Fund, heightening worried about Athens’ ability to
enforce deeper spending cuts. For details, see [ID:nLDE6430PO]

The Dow Jones industrial average (.DJI: ) dropped 219.32
points, or 1.97 percent, to 10,932.51. The Standard & Poor’s
500 Index (.SPX: ) lost 26.59 points, or 2.21 percent, to
1,175.67. The Nasdaq Composite Index (.IXIC: ) shed 73.94 points,
or 2.96 percent, to 2,424.80.

“It looks like we’ve got some profit-taking on early-cycle
exporters, companies with a big global presence over in
Europe,” said Fred Dickson, chief market strategist at D.A.
Davidson & Co in Lake Oswego, Oregon.

“I consider large-cap techs fairly significant exporters.
We’re taking profits out of technology, energy and
industrials.”

Energy shares led the S&P lower as crude oil futures (CLc1: )
fell more than $3 to $83.35 a barrel. Chevron (CVX.N: ) was down
2.7 percent at $80.60 and the S&P energy index (.GSPE: ) slid 2.3
percent.

Even so, the day’s drop had not broken major support except
for a short-term bottom at 1,181 on the S&P 500, the intraday
low hit last week.

“For initial support most people are watching the 50-day
moving average, which is at 1,168,” said John Schlitz, chief
U.S. market technician at Instinet in New York.

Encouraging U.S. economic data on manufacturing and housing
failed to provide support. Reports showed new orders received
by U.S. factories in March unexpectedly increased and pending
home sales rose to a five-month high. [ID:nN0498574]

On the upside, better-than expected earnings from drug
makers Merck & Co Inc (MRK.N: ) and Pfizer Inc (PFE.N: ) boosted
those shares by more than 1 percent each.

Stock Market Investing

(Additional reporting by Rodrigo Campos and Caroline
Valetkevitch; Editing by Leslie Adler)

US STOCKS-Wall Street slides as Greece worries intensify